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The Clarity Blog

Data Compromise is a Risk for Every Business

on Jan 27, 2015 2:23 PM

While it may seem natural to insure your inventory and your building, you might have forgotten to insure another very valuable part of your business: your data.data_compromise

If you keep electronic records, complete payroll electronically and use credit card machines to process payments, you’re at risk for data compromise — and it could have a big impact on your business.

While the incidents you’ve heard about in the national news typically involve hackers getting into a system to steal personal information or credit card numbers, the majority of data breaches actually involve lost or stolen laptops or thumb drives. That type of loss means any business is at risk.

RELATED: Seven tips for jewelers to reduce the risk of data breach

Understand the Risk

If a data breach occurs, you can’t ignore it. Currently 46 states require you to notify customers. Keep in mind a simple apology might not be enough to satisfy them.

You probably remember the backlash when a major U.S. retailer experienced a data breach last year. It can be a public relations nightmare. Many companies that experience a breach offer a toll-free information line, credit monitoring services and identity recovery services.

Make Sure You're Covered

While you can take steps to reduce your chances of a data breach, no company is completely immune to the risk. That’s why it’s important to have data compromise coverage. Data Compromise coverage offered by Jewelers Mutual includes the following important elements: 

  1. Data Compromise – Response Expense. When client, employee or others’ data is stolen, electronically “hacked” or lost through accidental or inadvertent release, response expense coverage helps you meet state and federal requirements. Covered expenses could include:
     
    • Notification of affected individuals
       
    • Legal counsel
       
    • Forensic IT reviews
       
    • Credit monitoring, and/or identity restoration services
       
    • Services accompanying this coverage include information packets, a toll-free help line, credit reporting and monitoring, and ID theft restoration case management.
       
  2. Data Compromise – Response Expense, Defense and Liability. This additional level of coverage includes defense and liability costs for actions brought by one or more affected individuals or state attorneys general.

For coverage availability and details, please contact your Jewelers Mutual agent or a knowledgeable member of our staff directly.

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